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Sell off. The summer has been a pretty benign period that may have lulled some investors into a false sense of security. We are heading into a tunnel and markets are readjusting. The sharp rebound we saw is stalling out. There is uncertainty of the length of fiscal stimulus. Investors are starting to take some money off the table. Canadian dividend stocks are outperforming month to date.
BUY
The shares have come back and there are some segments of the business which is under-appreciated still. There are assets that have hidden value in the company that has surfaced in the past year. Their capital expenditure on fibre optic and wireless network are further advanced than its competitors.
telephone utilities
DON'T BUY
A value play within a value play, which is the financial sector. It has lagged significantly both YTD and in the recent recovery. You get life insurance, Great West Life, and asset management. The company isn't in danger but there are better opportunities elsewhere.
mngmnt
diversified
COMMENT
HOLD
Below $40, it is an opportunity. The dividend should be safe, with the Line 3 project coming to term, bringing cashflow on a long term basis. Demand long term will probably trend down, but there won't be any new pipelines built. There is still a lot of value and cashflow to be produced.
oil
gas pipelines
HOLD
He's surprised it trades below $14. Their business is defensive and they have the highest backlog they have ever had. Investors are probably discounting the company for the concessions they have made. These assets are good long-term value providers but it is weighing on the stock price. They just need to continue to do what they are doing.
contractors
HOLD
It has been the poorest performer of the Canadian banks for some time. He believes there needs to be a management change. The yield is attractive. Banking will be a tough business going forward because of low interest rates. We shouldn't see mass default due to government aid. The dividend is safe.
banks
